India Excelling in Protecting Small Investors, Corporate Governance: NSE CEO
India has made significant strides in protecting small investors, with corporate governance seeing remarkable improvement amid rapid technological advancements, National Stock Exchange (NSE) Managing Director and CEO Ashishkumar Chauhan said on Tuesday.
Speaking at NDTV Profit’s Blueprint for Viksit Bharat @2047 conclave, Chauhan highlighted the evolution of the Indian stock market, stating that the NSE’s market capitalization has surged from Rs 4 lakh crore in 1994 to over Rs 400 lakh crore today.
“When evolution happens, it starts slowly and then gathers pace. Corporate governance cleanup has improved. We have moved from publishing annual reports after two years to quarterly results. India is doing well in protecting small investors”, Chauhan said.
He emphasized the transformative role of technology in wealth creation, stating, “Technology is the only change that creates wealth. Rapid technological advancements today are set to generate even more wealth than the last century’s progress”.
Reflecting on the last few decades, he noted how India transitioned from an era without computers to a technology-driven market. “India is in a great position to take advantage of the technological wave and the wealth that comes with it”, he added.
Chauhan credited the NSE for automating processes and enhancing corporate governance, ensuring that minority shareholders' interests are well protected. “The main job of the stock market is to ensure corporate governance that benefits minority shareholders. In that regard, India is faring better than the best”, he asserted.
During a panel discussion, Morgan Stanley MD and Chief Equity Strategist India Ridham Desai pointed out that the emerging market story has evolved since the mid-90s. He noted that many assets in the emerging market space are shrinking, and India is also facing some impact.
Desai emphasized the need for India to diversify its sources of capital, stating, “We need to allow other pools of capital to enter Indian stock markets to ensure more secular flows”.
Meanwhile, investor participation in the Indian stock market continues to rise, with the NSE’s total unique investor base crossing 11 crore for the first time. The total number of client accounts registered with the exchange has now surpassed 21 crore, marking a significant milestone in India’s financial market expansion.
